It is important to understand your goals, the amount of risk you are prepared to take (how big the ups and downs along the way can be), how long you have to invest for before you set off.
DON'T PUT ALL YOUR EGGS IN ONE BASKET
Make sure that you own a good spread of investments as the best way to spread your risks. This is called diversifying. Our funds are all diversified investments.
Whilst investing in cash can seem like the safest option, over the long term inflation can erode the real value of your savings. A diversified investment should add value over the longer term.
If you are risk averse, regular saving is a good way to invest as it slowly adds your money to an investment rather than investing all in one go, smoothing the up and downs of your investment. But don't forget, less risk means less return in the long run.
By saving £132.50 per month from birth, it is possible to achieve a pot of just over £46,000, based on 5% growth per annum, enough to cover their living costs for three years.
If they are able to boost those monthly savings to £209.50, they could then achieve a savings pot of £73,462 to cover living expenses and tuition fees if they go to university.